How to Start an Attorney Represented Loan Modification Business
Mortgage loan modifications have become big news. The federal government's Home Affordable Modification Program, launched in 2009, offers financial incentives to encourage mortgage lenders and banks to work with struggling homeowners to lower their monthly mortgage payments. They do this by modifying the terms of these homeowners' mortgage loans. Many homeowners are reluctant to work directly with their mortgage lenders to seek a modification. If you are an attorney, you can start your own loan modification side business to help these homeowners.
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Instructions
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With a background in real estate law, and familiarity with mortgage lending, you can start advertising yourself as a loan-modification professional. You can do this by placing ads in local newspapers, on online classified sites such as craigslist.com and by asking your satisfied clients to spread the word. Many people today know homeowners who are struggling to pay their mortgage bills; they might recommend your services to them.
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Represent yourself honestly. There are no special training courses or certifications to identify attorneys as loan-modification experts. Simply explain in your advertising or in your conversations with potential clients that you have a background in real estate law and understand how to negotiate fair compromises with mortgage lenders and banks.
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Determine a fair price for your services. Remember, homeowners don't need to work with an attorney to request loan modifications.
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Decide exactly what services you will provide to your clients. Many homeowners many only need a consultation to explain their modification options. Others may need help to get a response from an overwhelmed mortgage lender. Still others might need you to help them craft a hardship letter.
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Study the way the loan modification process works. Lenders have many ways to lower the monthly mortgage payments of struggling homeowners. They can lower their interest rates, lengthen the term of the loan or reduce the principal balance. When working with individual clients, determine the solution that is best for them and give them the strategies they need to reach these goals.
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Ask satisfied homeowners--whom you've successfully guided toward a mortgage loan modification--if they'd be willing to act as a reference for your new side business. Potential clients will want to speak to your past customers to determine how successful you've been in helping them lower their monthly mortgage payments.
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References
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